Tim in a panic?
Best Buy (NYSE:BBY) says tablet sales are "crashing." Makes for a great headline, but what's really going on?
The company's CEO tells us that the tablet market is saturated, but people are again buying new PCs -- especially convertibles. The problem seems to be a lack of tablet innovation, preventing replacement sales.
In IT Blogwatch, bloggers crash and burn.
Your humble blogwatcher curated these bloggy bits for your entertainment.
Heee's Walt Mossberg (shut up):
Best Buy [is the sole] survivor of a breed that once included competitors like Circuit City and CompUSA. ... Best Buy CEO Hubert Joly gave an exclusive interview to me.
…"We’ve actually had a revival of the PC business. ... The tablets boomed [but] the volume has really gone down. ... The laptop has something of a revival because it’s becoming more versatile. ... The issue has then been that, once you have a tablet of a certain generation, it’s not clear that you have to move on to the next generation. ... The level of innovation in the past year has not been as great as it had been in the previous two." MORE
Jared Newman feels like a new man: [You're fired -Ed.]
A couple years ago, few people would have bet on the laptop as the savior for an ailing tablet market. But that's what Best Buy seems to be counting on as tablet sales fall flat.
…IDC estimates that worldwide tablet sales grew by just 11 percent year-over-year in the second quarter, down from 60 percent growth between 2012 and 2013. Apple was hit the hardest last quarter, as iPad sales fell by 9.3 percent...Samsung's growth was essentially flat. ... Meanwhile, the PC—which became a "replacement market" many years ago—is making a comeback. ... Two-in-one devices like Microsoft's Surface Pro 3 are blurring the lines between tablets and laptops, and are especially appealing to students. MORE
So Cyril Kowaliski whistles a happy tune:
So, yeah. Analysts may have missed the mark about the handheld hegemony slowly choking out the mainstream PC. As a PC user, I'd say that's music to my ears. MORE
But has Todd Haselton misread the writing on the wall?
Earlier this month Apple reported its fiscal third quarter earnings and, while it’s one of the largest sellers of tablets in the world, the company noted that sales of its iPad had slumped yet again. This might not be an Apple-only problem, however.
…Joley reaffirms some of our own suspicions as to why tablet sales are sinking in some arenas, and the reason is likely because folks don’t see the need to upgrade...as they do with other products, like phones. MORE
Amazingly, Brad Reed has something nice to say about a former BlackBerry CEO:
Was...Thorsten Heins actually right about tablets? While we laughed at Heins’ prediction last year that tablets would be dead in just a few years...he might have been onto something.
…Apple’s iPad sales growth has been stopped dead in its tracks despite the fact that iPads‘ average selling price has been dropping steadily. ... This problem is only expected to get worse once Apple releases a bigger iPhone. MORE
Meanwhile, texasrattler schools us with this analysis:
PC sales are back because they are the best all around device. They can be just as cheap as a tablet now and still do more. ... With 2 in 1s now being really popular and the new 360 flex models by HP and ASUS are doing well.
…Best Buy themselves even have a back to school offer. ... Just use your schools .edu account and you can get a new HP 360 flex for $549, retails for $799. MORE
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